Air France-KLM and Lufthansa Group enter improved offers for TAP stake

Both airline groups have emphasised their focus on maintaining the Portuguese carrier’s brand identity and developing its Lisbon hub, as they attempt to win over the government.
Air France-KLM and Lufthansa Group have submitted improved offers for a stake in TAP Air Portugal and have both made last-minute pitches outlining why they think their bids should be selected.

The two European airline groups submitted binding offers in July to Portuguese state holding company Parpublica for up to a 49.9% stake in TAP. Air France-KLM said it was looking to acquire a 44.9-49.9% shareholding while Lufthansa has not disclosed how much of the Portuguese carrier it wants to buy.

After evaluating both bids, Portugal’s government said in early September that the offers were very close and opened an additional period of negotiations with Air France-KLM and Lufthansa Group, to “allow for improvement” in their respective offers.

In a 30 September LinkedIn post, Air France-KLM chief executive Benjamin Smith said the airline group had submitted its “final offer” to the Portuguese state and listed five reasons explaining why he is “convinced that Air France-KLM offers TAP the best path towards a strong future”.

Smith emphasises that Air France-KLM would seek to “elevate TAP’s unique identity” as a brand within the wider group, with Lisbon serving as “our exclusive southern European hub”.

Lufthansa has also previously highlighted its own track record of developing national carriers within its stable while “preserving their national identities”. The German airline group has also pointed to Lisbon’s position as a “strategically important” Atlantic hub.

In his LinkedIn post, Smith talks up Air France-KLM’s desire to strengthen ties across the Atlantic from the Portuguese capital: “We want to build an even stronger bridge across the Atlantic, both north and south, notably Brazil.

“With the support of Delta Air Lines and our transatlantic joint venture, TAP would connect to a network of more than 375 destinations, bringing Portugal closer to new cities, customers and opportunities across the Americas.”

In a statement confirming that it has also submitted an “updated and improved offer” which “further strengthens our long-term commitment to TAP and Portugal”, Lufthansa says: “Our proposal reflects our conviction that, based on our proven track record of successfully developing network airlines, the Lufthansa Group is the best partner to support TAP’s future growth, strengthen its competitiveness and further develop its role as Portugal’s national carrier.”

In his final pitch to the Portuguese government, Smith says: “Our shared ambition is clear: to strengthen Portugal’s flag carrier, better connect the country, create jobs and long-term value in Portugal, all while helping to create a pan-European aviation champion.”

The Portuguese government said last month that the additional negotiating period would last “a few weeks”, after which it would select a single bidder to carry out final negotiations.

The post Air France-KLM and Lufthansa Group enter improved offers for TAP stake first appeared on FlightGlobal.

Source: www.flightglobal.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.